Costco's December sales exceeded the projections of analysts

SHEUNG WAN, Hong Kong - Jan. 14, 2025 - PRLog -- Costco Wholesale (COST) posted stronger Christmas sales forecasts on Wednesday than analysts expected.

Net sales for the five weeks ending January 5th at the membership-based store were $27.52 billion, up 10% over the previous year.1 Online sales rose 34% while comparable sales in the US rose over 9%. This group was "positively impacted by an estimated fifteen percentage points, due to the fact that Thanksgiving, Black Friday, and Cyber Monday occurred a week later this year."

JPMorgan analysts maintained their "overweight" rating for the company's shares but lowered their price target from $1,090 to $1,0652. JPMorgan's target is about 15% higher than Costco's Wednesday closing price of $927.37. Visible Alpha has analyst consensus at $1,047.06.

JPMorgan said the data were "strongly above" the Street's projections, indicating an improvement in "consumer spending backdrop, particularly the upper-middle class and higher-income consumer."

Citi expects Costco shares to demonstrate 'Modest Strength' following December sales.

After dropping 7% from an all-time closing high of $994.69 on December 11.3, Citi analysts expect Costco to demonstrate "modest strength" after the December quarter. In addition to a $1,060 price goal, the bank is "neutral".

This record was achieved one day before Costco reported fiscal first-quarter earnings that surpassed analyst estimates. These were the company's first quarterly profits after raising membership costs.

Our Company

Lavenhill Securities Limited's firm is founded on integrity. We adhere to the highest ethical standards, ensuring that our clients' interests are always emphasized. Transparency and trust are critical in our client engagements. We emphasize client's specific financial objectives and risk profiles and adapt investing strategies appropriately. Please visit us at https://lavenhillsecuritiesl.com.